(145181) Dd. 737490 750M 1/71 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry

No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

.In Confidence

DRAFT

ANNEXI

To:-

SECRET

Type 1 +

From

GOVERNOR'S PROPOSALS

1.

Telephone No. & Ext.

Department

(a) Over a period of 7 years the basic

W

contribution by Hong Kong should be as follows

millio.

(all figures in £ stopling)

Year

Capital Mainten-

Cash

Total

Works

ance and

Contri-

minor

bution

works

towards

Operating

Costs

1971/72

2.8

2.2

2.0

7.0

1972/73

2.

2.2

2.0

7.0

1973/74

2/8

2.2

2.5

7.5

1974/75

2.8

2.2

2.5

7.5

1975/76

2.8

2.2

2.5

7.5

1976/77 2.8

2.2

3.0

8.0

1977/78/ 2.8

2.2

3.0

8.0

19.6

15.4

17.5

52.5

Average

2.8

2.2

2.5

7.5

(b)

The agreement would be subject to review

at any time

(i) if the costs of capital works at

April 1970 prices were to go up or

down by 50 per cent or more, or

SECRET

/(ii)

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